A beach vacation home, while the ideal place to get away to and relax, is also fraught with risks. Some of those risks include well-known ones such as fire and theft. However, because a beach vacation home is often left vacant, there is a greater risk of theft and vandalism. Also, a beach vacation home is (naturally) located close to water, and is at higher risk of getting flooded and/or damaged by wind, rain, and especially hurricanes. To this end, the insurance you take out on your beach vacation home needs to be a little different than standard homeowner’s insurance. Unfortunately, different in this case can also mean more expensive.
Before purchasing a policy from any insurance company, find out if it offers supplemental flood insurance (often called hurricane insurance), since flooding and water damage are some of the biggest risks to a beachfront property. Find out the cost of this additional coverage; it may be significant. Also, find out if supplemental housing structures such as the boathouse, dock, and shed are included. If you plan to rent out the property, does the insurer offer liability coverage in case an accident occurs on the property, or there is a loss of rent or an act of vandalism? Homes located near large bodies of water will also require a small hurricane deductible. How can you work around these issues?
First, obtain at least three quotes from different insurance companies. Find out exactly what is covered under these quotes for the price quoted. Also, ask if your current homeowner’s policy can be combined with insurance on your vacation home, allowing you to take advantage of a multi-policy discount. To do this, you will need to classify your vacation home as your second residence or seasonal property. If there is a specific peril to the area, such as hurricanes or earthquakes, contact the Federal Emergency Management Agency (FEMA) and ask if it provides any special coverage. In this way, you can lessen the premium on your own homeowner’s insurance.
To reduce the chances of you having to file an insurance claim right after purchasing your policy, do what you can to protect your second home. Install storm windows and shutters. Invest in several fire extinguishers and smoke detectors. Basic home security might include outfitting all doors with deadbolts. A monitored alarm system is also a good idea and can actually reduce your insurance premium by 10-20%. If your beach vacation home happens to be located within a gated community, you might qualify for even greater insurance discounts.